Discount Grocers Lift Market Share

Britain’s discount supermarkets increased their share of the grocery market in the 12 weeks to October as they managed to attract more cash-strapped consumers from their bigger rivals.
Latest figures from market researchers Kantar Worldpanel showed that Aldi grew its share from 3 per cent to 3.5 per cent after seeing revenues soar by 25 per cent in the third quarter of 2011.
Lidl and Iceland both experienced a 10 per cent surge in sales, resulting in Lidl’s share increasing from 2.4 per cent to 2.5 per cent and Iceland’s slice of the sector edging up from 1.7 per cent o 1.8 per cent.
By contrast Tesco’s sales growth of 4.2 per cent caused its market share to dip from 30.9 per cent last year to 30.6 per cent, while sales at Asda (excluding trading at its recently converted Netto stores) and Sainsbury’s during Q3 rose by just 1 per cent, with their market share remaining static at 17.1 per cent and 15.9 per cent respectively.
Morrisons was the only one of the UK’s ‘big four’ grocery retailers to experience an increase in share, rising from 11.5 per cent to 11.6 per cent.
Edward Garner, director at Kantar Worldpanel, said; “Morrisons posted the strongest growth of the big four … but all of these retailers are responding to stretched household budgets with promotional initiatives.”
He added that the figures showed retailers with a “low-price message are the driving force in the market”.